PRU’s 1HFY25 results were largely in line with our estimates with an operating cash flow of US$247m and free cash flow generation of US$174m. PRU delivered a Intermin dividend of 2.5 cents/share, slightly higher than our estimate and continues to progress its A$100m share buy-back program with A$88m of share buy backs still to occur. An updated life of mine plan for PRU is anticipated in the 4QFY25 and represents the most material short-term catalyst to our valuation. The outcome of PRU’s stake 17.9% in Predictive Discovery (ASX:PDI, SPEC BUY, PT:$0.57) remains unclear with entrants of Zijin and Lundin onto the register potentially willing to pay a premium for the asset beyond PRU. We have adjusted our Price Target from $4.00 to $4.30 after spot price increases. BUY recommendation maintained.
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